[Federal Register Volume 73, Number 204 (Tuesday, October 21, 2008)]
[Notices]
[Pages 62587-62588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25063]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2008-0047]
Notice of Buy America Waiver Request by the Massachusetts Bay
Transportation Authority for Final Assembly of Rail Rolling Stock
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of Buy America waiver request and call for comment.
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SUMMARY: The Massachusetts Bay Transportation Authority (MBTA) has
asked the Federal Transit Administration (FTA) to waive its Buy America
requirements on the basis of public interest to permit Vossloh
Espa[ntilde]a S.A. (Vossloh) to manufacture and assemble two pilot
locomotives in Spain. MotivePower, Inc., a domestic competitor to
Vossloh has asked FTA to deny MBTA's request. FTA seeks public comment
before deciding whether to grant MBTA's request. This Notice sets forth
MBTA's arguments for and MotivePower's arguments against a public
interest waiver and seeks comment thereon.
DATES: Comments must be received by October 28, 2008. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: Please submit your comments by only one of the following
means, identifying your submissions by docket number FTA-2008-0047. All
electronic submissions must be made to the U.S. Government electronic
site at http://www.regulations.gov. Commenters should follow the
instructions below for mailed and hand-delivered comments.
(1) Web site: http://www.regulations.gov. Follow the instructions
for submitting comments on the U.S. Government electronic docket site;
(2) Fax: (202) 493-2251;
(3) Mail: U.S. Department of Transportation, 1200 New Jersey
Avenue, SE., Docket Operations, M-30, Room W12-140, Washington, DC
20590-0001.
(4) Hand Delivery: Room W12-140 on the first floor of the West
Building, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
Instructions: All submissions must make reference to the ``Federal
Transit Administration'' and include docket number FTA-2008-0047. Due
to security procedures in effect since October 2001, mail received
through the U.S. Postal Service may be subject to delays. Parties
making submissions responsive to this notice should consider using an
express mail firm to ensure the prompt filing of any submissions not
filed electronically or by hand. Note that all submissions received,
including any personal information therein, will be posted without
change or alteration to www.regulations.gov. For more information, you
may review DOT's complete Privacy Act Statement in the Federal Register
published on April 11, 2000 (65 FR 19477), or visit http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For questions please contact Jayme L.
Blakesley at (202) 366-0304 or [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to seek public
comment on whether the Federal Transit Administration should waive its
Buy America requirements of 49 CFR Part 661 for two prototype
locomotives to be manufactured and assembled in Spain by Vossloh
Espa[ntilde]a S.A. (Vossloh) for the Massachusetts Bay Transportation
Authority (MBTA).
The Massachusetts Bay Transportation Authority (MBTA) is procuring
28 new diesel electric locomotives. These locomotives will replace the
older portion of its commuter rail locomotive fleet as well as to meet
the increasing demand on [its] commuter rail system. MBTA has asked for
delivery of these locomotives to commence in 2011, at which time fifty-
four percent of its fleet of eighty locomotives will have reached its
useful life of twenty-five years.
Two parties submitted proposals--MotivePower, Inc. (MotivePower)
and Vossloh Espa[ntilde]a S.A. (Vossloh). These parties prepared and
submitted their Best and Final Offers (BAFO) on May 6, 2008. Vossloh's
BAFO was for a new-design locomotive. With its BAFO, Vossloh certified
non-compliance with the Federal Transit Administration's (FTA) Buy
America requirements for the assembly of pilot locomotives. Vossloh
asked MBTA to petition FTA for a waiver of its Buy America
requirements.
By letter dated September 3, 2008, MBTA forwarded Vossloh's request
for
[[Page 62588]]
a public interest waiver from the requirements of 49 U.S.C. 5327(j) and
the applicable Buy America regulations at 49 CFR part 661.
Specifically, MBTA has asked FTA to allow Vossloh to assemble two pilot
locomotives in Spain.
Without the waiver, Vossloh estimates that the geographic
separation between the design-engineering department in Spain and the
final assembly facility in Mayfield, Kentucky, would result in an
unacceptable increase in labor costs to Vossloh. A waiver for final
assembly of two pilot locomotives would limit the cost, advance the
schedule, and therefore reduce Vossloh's bid price for the entire
procurement.
Vossloh and MBTA believe that such a waiver is in the public
interest because it will enable Vossloh ``to submit a competitive bid
with respect to price and schedule,'' and because it will ``expand the
competitive range to include Vossloh as a compliant bidder.''
With certain exceptions, FTA's ``Buy America'' requirements prevent
FTA from obligating an amount that may be appropriated to carry out its
program for a project unless ``the steel, iron, and manufactured goods
used in the project are produced in the United States. 49 U.S.C.
5323(j)(1). One such exception is if applying the Buy America
requirements ``would be inconsistent with the public interest.'' 49
U.S.C. 5323(j)(2)(A). Before granting such waiver, FTA must issue a
detailed written statement justifying why the waiver is in the public
interest, and must publish this justification in the Federal Register,
providing the public with a reasonable time for notice and comment of
not more than seven calendar days. 49 CFR 661.7(b). This notice
satisfies the aforementioned requirement.
MotivePower, Inc. (MotivePower), a competitor to Vossloh, has
written several letters opposing MBTA's request for a Buy America
waiver. If awarded the contract, MotivePower would perform final
assembly at its Boise, Idaho, facilities. According to MotivePower, a
Buy America waiver in favor of Vossloh would jeopardize up to 200
current full time employees in its Boise, Idaho, facility and
additional jobs in its supplier plants located across the country.
MotivePower distinguishes between this procurement for passenger
locomotives and those of light rail vehicles for which FTA has granted
waivers in the past. Unlike the market for light rail vehicles,
MotivePower states that ``domestic capacity and engineering know how
[with respect to passenger locomotives] has, quite fortunately, not yet
been lost to foreign competition.''
Before deciding whether to grant MBTA's request, FTA seeks comment
from all interested parties. In the interest of transparency, FTA has
published copies of MBTA's request and the letters it received from
MotivePower. Interested parties may access these materials by visiting
the docket site at http://www.regulations.gov, docket number FTA-2008-
0047. Please submit comments by October 28, 2008. Late-filed comments
will be considered to the extent practicable.
Issued this 15th day of October, 2008.
Severn E.S. Miller,
Chief Counsel.
[FR Doc. E8-25063 Filed 10-20-08; 8:45 am]
BILLING CODE 4910-57-P